NFTs are in action right now. Reportedly, the sales of NFT have exceeded $2 million in the first quarter of 2021. And, this statistic is double the number of buyers and sellers of NFTs. Every single creator had skill and knowledge in different music, paintings, publishers, and much more. And if industry leaders are to be believed, soon NFTs will be available in the real estate industry, supply chain industry, manufacturing industry, and every possible sector. Everyone has understood the growth pattern of NFTs and is still exploiting NFTs to monetize their work and benefit from intellectual property rights. The newness in the field of NFT has not been exploited fully. It is far from it. The innovations and solutions that NFTs offer have amazed crypto enthusiasts on a daily basis.
NFTs Explained
NFTs, also known as Non-fungible tokens, are digital assets created on a blockchain ledger. NFTs are different from cryptocurrencies. Both are cryptos. But cryptocurrencies like Bitcoin, Ethereum, Ripple, Tether, etc., are fungible tokens. Each unit is always the same. At the same time, non-fungible tokens are distinctively identical. Every NFT performs a different function and is defined by different metadata and secured on the blockchain network.
NFTs constitute tangible and intangible assets. NFTs are not identical- they might exist on the same platform or be tokenized by the same person in the same niche, but they all are different. They are like movie/game tickets. Similar but not same. Every ticket is a pass to the game, but they all are different with certain information, including buyers’ names, date of the game, venue, etc. These tickets cannot be exchanged with one another in the game.
Currently, maximum NFT tokens are built on the Ethereum network with the help of ERC-721 and ERC-1155 standards. These standards create blueprints that help software developers swiftly deploy NFTs on the network. It ensures the compatibility of NFTs with other platforms and wallets like Metamask and Trustwallet. Famous blockchains like Eos, Neo, and TRON have also come forward with their own token standards on their blockchain network.
Non-Fungible Token has taken the tech world by storm and beholden a bullish run that is nowhere near to stop. A non-fungible token is a kind of cryptocurrency that can be entirely utilized to record and identify the owner and information of a digital asset on a blockchain network. One of the most in-demand blockchain networks for non-fungible tokens is Ethereum (ETH).
Some of the best NFT projects in 2021 are associated with the trading of exclusive digital art, music, and other collectibles. These NFT projects are being acknowledged as the future of the crypto world. In the era of streaming and file sharing, NFT has given the possibility to own the art that the artist has produced.
Importance Of NFTs
- NFTs have given the power, control, and ownership that creators deserved.
- Boundless and global accessibility
- Transparency
- Traceability of resale of their art.
- Royalty
- Instant Payment
- Eradication of any intermediaries
- No issue with censorship.
- No issue of licensing
Understanding The Correlation Between NFTs And Intellectual Property Rights;
The monetary influence of NFT in the world of crypto. But, NFT enthusiasts are still facing the issue of Intellectual property rights, as they are limited. NFTs have given a new opportunity to monetizing intellectual property rights, and many problems in their way, including licensing, assigning, or transferring intellectual property rights, have been solved. It is advised to be very careful while using third-party IP protection.
This unique tokenizing technology has made revolutions in multiple fields. There might be differences in opinion, but one fact is straight that NFT should never be confused with the authenticity of actual products themselves.
Things To Be Considered While Implicating Intellectual Property Rights;
- Distinguish between ownership of the NFT and ownership of intellectual rights.
- Rights conferred by an NFT seller entirely depend on the transformation through licenses or assignment.
- If the original content creator of the asset agrees to transfer original rights, then only original rights can be transferred.
- NFT owners do not always have the right to reproduce, distribute copies, publicly perform, display, or make derivatives of the original work.
- Copyrights are exclusive rights that remain with the original content creators and can be transferred only by their consent.
Bottom Line;
The clientele list of NFTs consists of companies, artists, musicians, publishers, etc. But, the main concern over here is the transfer of Intellectual property rights. It should be noted that one should always take legal advice before stepping into the world of NFTs. This legal advice can protect you and your content. It will act as a shield against any kind of exploitation of your and your content.
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